Gibraltar global minimum tax

Source-cited draft. Independent review of this continuation and professional attestation are pending. This is a domestic-law calculation and compliance framework, not a complete Pillar Two engine.

Who this applies to

The Act applies generally to fiscal years beginning on or after 31 December 2023; its Part 3 income inclusion rule (IIR) applies to fiscal years beginning on or after 31 December 2024. Thus an ordinary calendar-year group first tests domestic top-up for 2024 and IIR for 2025. A year beginning exactly on either statutory date is included. Section 2.

The incorporated Model Rules' ordinary MNE threshold is consolidated UPE revenue of at least EUR750 million in at least two of the four immediately preceding fiscal years. Article 1.1 also addresses non-twelve-month periods and points to Article 6.1 for special threshold cases; mergers, demergers and short periods need that separate analysis. Model Rules, Article 1.1.

Gibraltar additionally defines a Wholly Domestic Group by UPE and all constituent entities being located in Gibraltar and consolidated revenue of at least EUR750 million in two of the four preceding fiscal years. Section 15 treats it as an MNE group for Part 4, not automatically for every IIR provision. Location follows Model Rule 10.3, not incorporation alone. For four ordinary twelve-month years, revenues EUR740m, EUR750m, EUR760m and EUR730m meet the two-year revenue test; EUR740m, EUR749m, EUR760m and EUR730m do not. These examples assume unchanged group scope and do not establish each entity's inclusion. Sections 3 and 15.

Map excluded entities and ownership before calculating. Part 4 expressly excludes Investment Entities and Insurance Investment Entities; a commercial label such as “investment company” is not proof of the defined classification. Section 12 charges specified parent entities under the IIR in accordance with the Model Rules. Section 13 excludes the UTPR charging articles from Part 3. Domestic constituent entities are jointly liable under section 16; domestic joint ventures/subsidiaries have the separate joint-liability rule in section 17. Sections 12–18.

Rates, bands and thresholds

Item	Amount / condition	Official source
Minimum rate	15%; calculate GloBE inputs and domestic modifications first	GMTA section 11
Ordinary GIR/payment	Last day of fifteenth month after year-end	GMTA sections 26–29
Conditional first-year GIR/payment	Last day of eighteenth month, only if both first-year and no earlier foreign GIR obligation conditions hold	GMTA sections 26–29
Foreign-filing notification	At least three months before GIR deadline, qualifying exchange relationship required	GMTA section 28
Registration	Initial specified cohort 28 February 2026; later first in-scope years within six months of year-end	ITO registration section 4

The base

Rule 3AA permits a Gibraltar Parent Entity within scope of both Acts to elect for the specified minimum-tax-only treatment. The defined parent must be an Ultimate Parent Entity, and a constituent entity ordinarily resident under Income Tax Act section 74 or registered/otherwise established in Gibraltar. A Gibraltar subsidiary of a foreign UPE does not acquire this election merely because it pays domestic top-up tax. Allowances Rules, rule 3AA(1)–(3), (16).

The election must be submitted in writing and approved in writing by the Commissioner. Written approval is required where the rule's conditions are met; the election is valid from that approval date. Under an approved election, the ordinary Income Tax Act provisions levying a charge do not apply to the parent and group constituent entities for the basis periods specified in rule 3AA(9). Do not treat a submitted request as approval or infer that every administrative duty under every enactment disappears. Rules 3(55), 3AA(2), (4)–(6).

Keep the election date, approval date, basis-period start and ordinary return due date separately. Rule 3AA(9) covers basis periods starting after the election date and any basis period whose section 28 return was not yet due on the election date. This permits an eligible earlier period to be covered once approved; it is not blanket reopening of all prior assessments. For example, if the election is made on 1 April and an earlier period's return is due on 30 April, that period meets this particular not-yet-due test; if its return was due on 31 March, it does not meet that limb. These dates are hypothetical and establish neither the statutory return deadline nor overall election eligibility. Rule 3AA(5), (9).

A rejection appeal must be written to both the Commissioner and Tribunal, state the grounds, and be made before the end of the 30-day period beginning with notification of rejection. Do not substitute the ordinary assessment appeal deadline. Rule 3AA(7)–(8).

Validity in relation to a constituent entity can cease through the parent's written notification, or unmet conditions together with the Commissioner's written reasons. If the group falls out of scope, the rule provides continuation for no more than 18 months, with notification when the parent first becomes aware and confirmation of reasonable steps taken to maintain validity within that period. The Commissioner determines continuing validity; this is not an unconditional eighteen-month extension. A further election is possible if the conditions are met. Rule 3AA(10)–(14).

Rule 3AA(15) expressly permits use of Part VI and Schedule 4 anti-avoidance rules for elections after 1 March 2025. Income Tax Act section 40(6) separately permits counteraction/disregard of the specified election on its stated tax-advantage basis, considering substantive results, contrived steps and exploitation of shortcomings. Retain commercial and statutory-scope evidence; approval is not a blanket anti-avoidance clearance. Rule 3AA(15); Income Tax Act, section 40(6).

The current submission address/form, approval workflow, consequences for returns already submitted, cessation mechanics and any case-specific anti-avoidance determination remain to be verified. No election is made by this Guide.

Domestic calculation sequence

The minimum rate is 15%, under section 11. A headline corporate-tax rate of 15% does not itself establish a zero top-up liability: the Act requires a Model Rules calculation with domestic modifications. Establish GloBE income, adjusted covered taxes, effective tax rate, top-up percentage, excess profits and additional current top-up tax before using the formula below. This Guide does not derive those inputs from ordinary taxable profits. Sections 11 and 18–25.

1. Identify the applicable fiscal-year Model Rules, Commentary, administrative guidance and Gibraltar notices. Sections 4 and 6 incorporate interpretation rules and specify timing for Commentary amendments; do not apply a later release to an earlier year without checking that timing and any ministerial notice.
2. Apply domestic modifications. Section 19 disapplies the listed Model Rules, including the ordinary jurisdictional formula/allocation provisions. Section 20 disapplies the QDMTT Safe Harbour for Part 4. That is not a statement that every safe harbour is unavailable, or that another jurisdiction cannot recognise Gibraltar's QDMTT.
3. Under section 21, exclude the specified foreign tax accrued by a foreign owner/main entity on domestic GloBE income from domestic adjusted covered taxes. Section 22 excludes domestic covered tax allocated to a foreign entity under the stated Model Rule 4.3 provisions. Do not add foreign parent tax to the domestic pool indiscriminately.
4. Section 25 requires separate jurisdictional computations for minority-owned constituent entities, domestic JV groups and other domestic constituent entities. For each applicable pool use top-up percentage × excess profits + additional current top-up tax. Sections 23–24 separate the domestic constituent-entity total from domestic JV totals.
5. If computed in a foreign currency, section 8 converts the liability to sterling using the average exchange rate for the fiscal year. Document the rate and quotation direction; the Act does not supply the numerical rate.

Source for these steps: sections 3–8 and 18–25. Elections affecting the Model Rules calculation have the same effect under section 7; preserve the actual election and applicable conditions. Safe-harbour eligibility, excluded-entity definitions, deferred-tax adjustments and complete IIR allocation remain outside this draft's verified computation scope.

Deadlines and filing

Sections 26–27 set the ordinary GIR deadline at the last day of the fifteenth month following fiscal-year end. The eighteenth-month deadline applies only if this is the group's first fiscal year subject to the Act and it has not been required to file a GIR elsewhere for a previous fiscal year. First filing in Gibraltar alone does not prove eligibility for eighteen months. The UPE or designated filing entity files for the group under Part 3; Part 4 requires appointment of a designated local entity to file for the domestic entities/JVs. Required supporting information accompanies the return. Sections 26–27.

Section 28 provides a local-filing exception where the GIR has been filed in a jurisdiction with a qualifying competent authority agreement effective with Gibraltar for that reporting year. A general tax treaty or an intention to file overseas is insufficient evidence that the exception is satisfied. The required notification that the GIR has or will be filed abroad is due no later than three months before the GIR filing deadline. Verify both the agreement and actual filing. For Part 3, section 28(1)(b) names the UPE or Designated Local Entity as notifier. For Part 4, section 28(2)(b) names the Designated Local Entity, Domestic Constituent Entity, Domestic Joint Venture or Domestic JV Subsidiary. Preserve the statutory “Local” designation in the Part 3 notification rule; do not silently substitute “Filing”. Section 28.

Payment is due by the GIR filing deadline. The Part 3 parent pays for the group, with joint liability where more than one parent has liability; under Part 4 the designated local entity pays for the domestic entities/JVs. The foreign-filing exception does not itself remove payment. Section 29.

For a 31 December 2024 year-end, an established eighteen-month case has a GIR/payment deadline of 30 June 2026; the ordinary fifteen-month case has 31 March 2026. Calculate the separate three-month-prior notification deadline using the applicable date and confirm administrative date conventions. These historical dates do not grant a late filer a new extension. The old registration guidance URL still returned 404 on 31 October 2026. The current AEOI landing page now links the distinct dated guidance below; use those documents for the verified workflows, keeping the historical deadline example separate.

Registration and changes ITO registration guidance

1. Establish the scope above and nominate the entity acting for the group. Register once for the group, including all Gibraltar constituent entities on GMTAREG1. Initial in-scope fiscal years ending 31 December 2024 to 31 August 2025 had a 28 February 2026 registration deadline. Later first in-scope years require registration within six months of that year-end. These are registration dates, separate from GIR, notification and payment deadlines. Sections 3–5.
2. Open https://aeoi.egov.gi/, expand GIR and select Enrolment. For an entity not already enrolled for CbC, use Entity Type Multinational, Reporting Type GIR (or GIR & CbC only for a genuinely new combined registration). Enter reporting-entity name, registered address, TIN, filing role, UPE jurisdiction, group name and fiscal year-end in dd/mm. Upload GMTAREG1, including the registering entity. Do not enter a placeholder TIN: later notification and GIR validation uses that exact identifier. Appendix 1.
3. Enter responsible-person identity and contact details, a valid photo-ID scan and a director-signed authorisation appointing that person responsible for GIR compliance. An agent can register with those documents and is then authorised to file GIR/Article 8.1.3 notifications. Preserve the submitted form and confirmation; ITO reviews registration and contacts the Designated Local Entity for clarification. Sections 5–7 and Appendix 1.
4. If already enrolled for CbC, use CbC → Portal with the existing credentials, Filings → Create Filing; name the filing, select GIR Enrolment, and use the first in-scope fiscal year-end as period end. Open its filing-name link → GIR Enrolment Form, complete the above information and use Validate and Submit, preserving confirmation. Do not create a duplicate brand-new combined enrolment. Appendix 2.
5. Reflect constituent-entity and Designated Local Entity changes in the annual notification, or in the locally filed GIR where no annual notification is required. If the group falls out of scope, the Designated Local Entity notifies GMTAregistration@gibraltar.gov.gi in writing with reasons within six months of the first out-of-scope year-end. If a group not filing annual notifications changes Designated Local Entity, the new entity confirms its appointment to that address as soon as possible and no later than twelve months after the change-year-end, and enrols for future filings. Registration changes do not themselves decide continued rule 3AA election validity. Sections 8–11.

Choose notification or local GIR ITO notification guidance

Retain evidence of the reporting-year qualifying exchange relationship and overseas GIR. Gibraltar's intention to exchange with a country is insufficient. The June guidance points to the OECD activated relationships list and separately recognises the specific 2024 reporting-year central-filing common understanding, with conditional section 48 penalty relief. That does not create a general extension, remove notification/payment duties or prove a later-year relationship. Where the exception is unavailable, prepare the locally required GIR. Notification guidance section 4; GIR guidance sections 1–4.

For an Article 8.1.3 notification:

1. GIR → Portal, log in after registration, and confirm the registered TIN using Entity Management. Reports → Unscheduled → GIR Delegation – Article 8.1.3 → Add New Report. Appendix 1, steps 1–5.
2. Complete A group name; B every covered Gibraltar entity and tick exactly the intended Designated Local Entity; C its contacts (agent Job Title and Contact Company where applicable); D UPE information in every case, marking Reception Via Exchange when applicable; E Designated Filing Entity only if exchange comes from its jurisdiction instead of the UPE's; F fiscal-year start/end; G submitting TIN exactly as registered. Appendix 1, step 6.
3. Download the draft JSON backup if needed. Click Preview, fix highlighted missing fields, then Report. Check the dashboard reaches Submitted: Valid; a submitted-invalid notification needs Validation Results, correction and resubmission. Actions offers View Details/history, View Report, Edit Report/resubmit, Download JSON and Revoke. Save the accepted notification and validation/history evidence. Initial technical validity is not tax-authority acceptance of the underlying legal position. Appendix 1, steps 7–10; section 6.

For a GIR that must be filed locally in Gibraltar (including central filing from Gibraltar):

1. Prepare final XML using the applicable OECD GIR template/schema and dissemination scope. Local filing contains the information Gibraltar would receive through exchange; do not indiscriminately upload every jurisdictional section. The guide states there is no testing environment, so upload the final submission only. GIR guidance sections 4–5 and Appendix 1.
2. Check the local rules: 40001, exactly one GlobeBody; 40002, in the stated GIR102/FilingInfo OECD0 case do not mix new OECD1 section records with existing OECD0 records; 40004, DocRefId pattern transmitting-country + reporting-period year + registered TIN + unique ID; 40005, exclude the forbidden sequences listed in the guidance. Use the literal current schema and validation list, including the registered TIN and correct local-filing/receiving-jurisdiction fields. Appendix 1, step 1.
3. GIR → Portal → Reports → Scheduled → GIR; select the reporting date → Upload Report → Select a file. Confirm the XML before Submit. If the required period is missing, use GMTAnotifications@gibraltar.gov.gi; do not substitute another year. Appendix 1, steps 2–6.
4. Export the PDF receipt, then confirm Submitted: Valid in Scheduled reports and inspect Actions/validation results. A receipt stating Report Received precedes validation. For rejection, view the specific validation message, amend XML and upload again. The June guidance has no published accepted-GIR amendment workflow yet: request that route at GMTAnotifications@gibraltar.gov.gi, preserving the already accepted record. Notification Edit Report is not established as the GIR amendment method. Appendix 1, steps 6–9.

Separate top-up return and payment GMTA1

If a Gibraltar top-up liability exists, submit GMTA1 in addition to GIR/Article 8.1.3 notification and any separately required CT1. Complete fields 1 group name, 2 Designated Local Entity, 3 its Gibraltar taxpayer reference, 4 fiscal-year dates, 5 total Gibraltar jurisdictional top-up tax in sterling, 6 authorised person's declaration, capacity, name/contact, signature and date. The statutory officer, shareholder or authorised agent must actually have authority. Email the signed form to GMTAreturns@gibraltar.gov.gi by the GIR deadline. The form's shorthand first-year note does not override both statutory eighteen-month conditions above. GMTA1, pages 1–3; GIR guidance section 8.

Pay by bank transfer using the official form's current payment instructions and the unique top-up-tax payment reference provided to the Designated Local Entity. An ordinary CT1 reference, a sent GMTA1 or an uploaded GIR is not proof of payment. Reconcile the bank execution and ITO allocation/receipt to the amount, period and reference. If the reference is missing or bank transfer is unavailable, the form directs enquiries to tax.accountsenquiries@gibraltar.gov.gi, phone +350 20071071 option 2. No payment, enrolment, email or live filing was performed while preparing this Guide. GMTA1, page 3.

Records, assessments and repayment

Keep the records needed for a GIR or notification for ten years from the fiscal-year end, under section 30. Sections 33–34 prescribe the stated ten-year assessment/amendment limits; section 35 imports the Income Tax Act assessment-appeal provision. Consult the assessment appeals Guide, but do not transfer its ordinary income-tax refund or surcharge rules to this Act. Sections 30–36.

Section 52 allows proven overpayment to be refunded, with a claim within ten years from the end of the fiscal year concerned, and Commissioner certification of the amount. This differs from the ordinary income-tax six-year refund rule. For fiscal year ending 31 December 2024, the ten-year endpoint is 31 December 2034. Keep refund procedure, assessment appeal and record-retention obligations distinct. Section 52.

Penalties and interest

Section 44 imposes 2% of unpaid top-up tax on the day after payment is due. At its further thirty-day trigger, 5% of the remaining unpaid tax and first surcharge becomes payable. If GBP10,000 and its first surcharge remain wholly unpaid throughout, the first surcharge is GBP200 and the second GBP510, leaving GBP10,710. If the first surcharge is paid before that second trigger but all principal remains unpaid, the second amount is GBP500. Establish actual dates and payments before computing a live liability. Section 44.

Section 43 specifies a GBP1,000 failure-to-file/notify penalty, but the published text contains the wording “shall may be liable”; record this drafting defect rather than asserting automatic imposition. Section 45 specifies GBP5,000 for record failures. Section 47 specifies GBP500 for the relevant notice failure and a further GBP1,000 after its one-month trigger. Section 48 gives conditional discretionary relief; do not assume a waiver. Notices, offences and penalty appeals require their own analysis. Sections 43–49.

Cross-border points

The location, overseas owner/main-entity covered-tax exclusions, IIR commencement and foreign-filing exception above are distinct tests. Apply each to its own fiscal year and entities; ordinary income-tax treaty relief is not a substitute for a qualifying GIR exchange relationship. Use the linked own-law provisions in Who this applies to, The base and Deadlines and filing.

Two worked examples that recompute

Domestic formula and currency

Assume a reviewed pool has an established top-up percentage of 3%, excess profits EUR800,000 and additional current top-up tax EUR2,000. Section 25 gives EUR26,000. If the evidenced fiscal-year average is GBP0.85 per EUR1, section 8 gives GBP22,100. The rate and all inputs are illustrative, not official figures. At a zero top-up percentage, the same EUR2,000 additional current top-up tax still produces EUR2,000 under the formula; do not discard that component. Sections 8 and 25.

name: Gibraltar domestic top-up formula and sterling conversion
inputs:
  topup_percentage: 0.03
  excess_profits: 800000
  additional_current_tax: 2000
  gbp_per_eur: 0.85
steps:
  - tax_eur: topup_percentage * excess_profits + additional_current_tax
  - tax_gbp: tax_eur * gbp_per_eur
  - zero_percentage_tax: 0 * excess_profits + additional_current_tax
expected:
  tax_eur: 26000
  tax_gbp: 22100
  zero_percentage_tax: 2000

Late-payment surcharge control

Section 44 imposes 2% of unpaid top-up tax on the day after payment is due. At its further thirty-day trigger, 5% of the remaining unpaid tax and first surcharge becomes payable. If GBP10,000 and its first surcharge remain wholly unpaid throughout, the first surcharge is GBP200 and the second GBP510, leaving GBP10,710. If the first surcharge is paid before that second trigger but all principal remains unpaid, the second amount is GBP500. Establish actual dates and payments before computing a live liability. Section 44.

name: Gibraltar minimum-tax late-payment surcharge
inputs:
  unpaid_tax: 10000
steps:
  - first_surcharge: unpaid_tax * 0.02
  - second_all_unpaid: (unpaid_tax + first_surcharge) * 0.05
  - total_all_unpaid: unpaid_tax + first_surcharge + second_all_unpaid
  - second_first_surcharge_paid: unpaid_tax * 0.05
expected:
  first_surcharge: 200
  second_all_unpaid: 510
  total_all_unpaid: 10710
  second_first_surcharge_paid: 500

Ask the client first

Obtain the ownership/entity map, four-year consolidated revenue, fiscal-year dates, entity-location analysis, excluded-entity evidence, accounting standards, GloBE working papers, tax allocations, elections, prior overseas GIR obligations, filer appointments, exchange-agreement evidence, payment history and average exchange rate.

• Verify both group threshold and each entity's classification, location and liability.
• Separate IIR commencement from domestic top-up commencement and identify each calculation pool.
• Reconcile the full GloBE inputs before applying the domestic formula.
• Test first-year deadline conditions against earlier foreign GIR obligations.
• Keep registration, GIR, notification, payment and appeal steps distinct.

Sources

Source	URL	Read on
GMTA sections 2–52	https://www.gibraltarlaws.gov.gi/uploads/legislations/minimum-tax/2024-20/2024-20o.pdf	2026-10-31
Allowances Rules 3(55), 3AA	https://www.gibraltarlaws.gov.gi/uploads/legislations/income-tax/1992s016/1992s016(23-03-26).pdf	2026-10-31
Income Tax Act 40(6)	https://www.gibraltarlaws.gov.gi/uploads/legislations/income-tax/2010-21/2010-21(23-03-26).pdf	2026-10-31
ITO registration guidance, 10 February 2026	https://tax.egov.gi/Downloads/Guidance_Note_Pillar_Two_Registration.pdf	2026-10-31
ITO notification guidance, 1 June 2026	https://tax.egov.gi/Downloads/Guidance_Note_Pillar_Two_Article.pdf	2026-10-31
ITO GIR guidance, 11 June 2026	https://tax.egov.gi/Downloads/Guidance_Note_GloBE_Information_Return.pdf	2026-10-31
GMTA1, June 2026	https://tax.egov.gi/Downloads/GMTA1_Form_June2026.pdf	2026-10-31
OECD Model Rules Article 1.1, threshold	https://www.oecd.org/content/dam/oecd/en/publications/reports/2021/12/tax-challenges-arising-from-digitalisation-of-the-economy-global-anti-base-erosion-model-rules-pillar-two_eed81a23/782bac33-en.pdf	2026-10-22

Not yet confirmed: The official index links the Act used here, while displaying both “Current Version” and an out-of-date version label. The same PDF is linked in both entries; that does not certify absence of later notices or changes. Remaining acceptance work includes a full fiscal-year OECD guidance/notice reconciliation, complete GloBE calculations and exclusions, safe harbours, parent allocations, accepted-GIR amendment details, unresolved live acknowledgements and payment allocation, and specialised return cases, operational election/cessation handling and independent/professional review. No live return or payment was made. No comprehensive coverage or professional attestation is claimed.

General tax and accounting reference only. A qualified professional must check current law, the group's facts, calculations, elections and filing requirements before action.